How Does a Fleet Service Lease Work? Your Brief Guide

Did you know that 51.9 percent of all fleet leasing contracts are full-service leases? Business owners have seen the benefits this type of leasing can offer and they want in.

But how is a full fleet service lease different from a regular lease and why is it an option to consider?

Let us look a bit closer at a full-service lease.

What is a Full-Service Lease?

A full-service lease is a closed-end lease that includes maintenance and other transportation services. The person leasing the vehicle, or lessor, is responsible for maintenance not caused by driver negligence or accidents. A full-service lease typically lasts between 36 to 84 months.

During the period of the lease, the lessee makes monthly payments and when the period is over, the vehicle returns to the lessor. The lessee then has the choice of beginning another full-service lease with a new vehicle.

Some of the responsibilities a lessor has can include garaging the vehicles, cleaning them, routine maintenance, and the provision of a replacement vehicle if the leased one is out of commission. Sometimes, even fuel can fit into the full-service lease agreements.

Most full-service leasing customers are private fleets or fleets that deliver their own products or services. By being sure that the trucks or other fleet vehicles are kept in great shape, you can focus more on customer satisfaction and driver performance and not on repairs and general fleet maintenance.

How Does a Full Fleet Service Lease Differ From Traditional Leases?

full-service lease provides added services that a traditional lease does not offer. With a full-service lease, you have predictable monthly costs. That is not the case when you have to worry about fleet maintenance in a traditional lease.

A full-service lease will take care of everything. That includes configuration, vehicle specifications, financing, vehicle maintenance, and disposal. You will not have any surprise bills for repairs to keep your fleet working as you need it to.

There are also various financing options with a full-service lease. You will have the chance to work with the lessor to come up with the perfect balance of maintenance level, vehicle type, and delivery method.

When to Choose a Full-Service Lease

You want to consider a number of factors, including the comparison of ownership vs. leasing.

You want to see what it would cost you to own the fleet that you want. This includes the purchasing of the vehicles, their average maintenance costs, as well as administrative costs and disposal costs. Then, you want to compare it to what it costs you to get full-service leases. In the end, you want to let the numbers speak for themselves.

Lease the Perfect Fleet

If you want to save money, ensure your fleet is in perfect working order at all times, and not have to deal with the stress of maintenance, a full fleet service lease is the right choice.

Contact us at Transervice to learn more!

How Does a Fleet Service Lease Work